Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The intangible assets section of Cheyenne Corporations balance sheet at December 31, 2017, is presented here. Patents ($71,000 cost less $8,000 amortization) $63,000 Copyrights ($54,500

The intangible assets section of Cheyenne Corporations balance sheet at December 31, 2017, is presented here.

Patents ($71,000 cost less $8,000 amortization)

$63,000

Copyrights ($54,500 cost less $43,400 amortization)

11,100

Total

$74,100

The patent was acquired in January 2017 and has a useful life of 10 years. The copyright was acquired in January 2011 and also has a useful life of 10 years. The following cash transactions may have affected intangible assets during 2018.

Jan. 2 Paid $27,000 legal costs to successfully defend the patent against infringement by another company.
Jan. June Developed a new product, incurring $249,000 in research and development costs. A patent was granted for the product on July 1, and its useful life is equal to its legal life. Legal and other costs for the patent were $10,000.
Sept. 1 Paid $47,000 to a quarterback to appear in commercials advertising the companys products. The commercials will air in September and October.
Oct. 1

Acquired a copyright for $237,000. The copyright has a useful life and legal life of 50 years

1.) Prepare journal entries to record the transactions.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Cost Accounting College Version

Authors: Steven M. Bragg

1st Edition

1938910702, 978-1938910708

More Books

Students also viewed these Accounting questions

Question

what does the term portfolio meanin financial terms?

Answered: 1 week ago